Page 14 - AsianOil Week 32

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Australian FSRU project wins critical status
PROJECTS & COMPANIES
EPIK’S plan for a oating storage and regasi - cation unit (FSRU) in New South Wales’ Port of Newcastle has been given critical status by the local government. EPIK announced the a rmation of the importance of its project on August 14.
e Newcastle GasDock plan is intended to provide supplies to users in the Hunter Valley and broader NSW region. e NSW govern- ment’s decision that it should qualify as critical state signi cant infrastructure (CSSI) is a rec- ognition from the Minister for Planning of the project’s importance. e NSW government put the Port Kembla gas terminal on the CSSI list in June 2018.
Celebrating the CSSI status for Newcastle GasDock, EPIK’s founder and managing direc- tor, Jee Yoon, said the project’s primary objective was “to deliver the most competitive infrastruc- ture solution for natural gas imports into NSW. With CSSI status in hand, we are a considerable step closer to delivering the critical infrastruc- ture needed to bring new energy to NSW, pro- viding access to long-term, competitive gas supply to the region, safely powering our homes, driving industry forward and keeping prices low for everyone to enjoy.”
Newcastle GasPort is expected to begin operations in the first half of 2021. It will require an investment of around A$250mn ($169mn), in addition to the 170,000 cubic metre FSRU. Previous estimates of the entire project have suggested a value of $400-430mn.
e statement said the project would be able to supply more than 80% of the region’s current gas needs. NSW imports around 95% of its gas from other states.
“We look forward to continuing dis- cussions with major gas and power users throughout the state as they seek long-term, competitive solutions to their gas supply and power needs,” said EPIK’s executive director, James Markham-Hill.
The Portk Kembla Gas Terminal (PKGT) project, in its statement on achieving CSSI status, said it could provide more than 70% of NSW’s gas needs. e state gave development consent for PKGT in April, with the plan to deliver rst gas to users in late 2020. A second phase of work at PKGT could see an 800 MW gas- red power plant built.
A naming ceremony for PKGT’s 170,000 cubic metre Hoegh Galleon was held in June.™
New Caledonia plans LNG imports
POLICY
NEW Caledonia, a French island in the Paci c Ocean, is seeking LNG supplies for 15 years, according to a report from Bloomberg. e news agency reported that it was seeking around 200,000 tonnes per year (tpy) of LNG, under a project backed by Nouvelle-Caledonie Energie (NCE).
This would involve a floating storage and regasi cation unit (FSRU) and a 200-MW gas- red power plant. e LNG contract should run from the second half of 2023 to the rst half of 2024. LNG will be priced against crude or the US’ Henry Hub, or a combination of the two. Cargoes should come in 40,000 or 80,000 cubic metre amounts.
Submissions are due by August 29, Bloomb- erg said. A request for proposals (RfP) will be issued to short-listed applicants in the second quarter of 2020.
The power facility would replace an existing facility in Noumea, which supplies a nickel plant, owned by Eramet’s Societe Le Nickel (SLN), which has been on the islands for more than 100 years. The nickel producer is also a shareholder in the NCE venture. According to a document from the government in 2018, SLN takes the lion’s
share of the power – at 160 MW – while the remainder goes to local needs. The island group is reported to hold 10-20% of the world’s nickel resources.
New Caledonia formulated a plan for its energy transition in 2016, following the Paris Accords. e Doniambo facility currently runs on heavy fuel oil, which is both polluting and expensive. Energy accounts for 35% of SLN’s running costs.
According to Eramet’s 2018 corporate social responsibility (CSR) report, switching SLN’s oil-fired power plant to LNG would play a major role in reducing its emissions. “A delay in the implementation of this lever would lead to a 20% reduction in tonnes of CO2 per tonne of outgoing product instead of the target of 26%.”
Eramet’s sulphur oxide (SOx) emissions increased by 10% in 2018, largely as a result of greater power generation by SLN in New Caledonia.
Shi ing to LNG should save cash for both the nickel company and for local users. Using gas will also allow it to o set the intermittency problem of renewable energy. e territory has both solar and wind facilities.™
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w w w . N E W S B A S E . c o m Week 32 14•August•2019